South African fleet operators are increasingly introducing new energy vehicles (NEVs) into their fleets, as businesses look to lower operating costs, reduce carbon emissions and shield themselves from volatile fuel prices, says WesBank.
This, as government incentives for local electric vehicle (EV) manufacturing begin taking effect, charging infrastructure expands and more businesses seek greater operational resilience in an uncertain economic environment.
Speaking to ITWeb on the side-lines of WesBank and First National Bank Evolution 2026 event, Andisiwe Nikelo, CEO of WesBank Fleet Management and Leasing, said commercial EVs are moving beyond sustainability discussions and are increasingly being evaluated as a practical business decision.
As an operating division of FirstRand Bank Limited, WesBank is an asset-based and vehicle finance provider. It offers vehicle loans, fleet management and business asset finance.
According to Nikelo, SA’s automotive industry is entering a key phase in its electrification journey. The Department of Trade, Industry and Competition's Electric Vehicles White Paper identified 2026 as a milestone year for the country's NEV transition, while a tax deduction for manufacturers producing electric and hydrogen-powered vehicles came into effect on 1 March and will run until 2036.
Commercial fleets are emerging as one of the country's earliest adopters because many businesses already have predictable operating patterns that make electrification easier to evaluate, she noted.
"We're definitely seeing interest from customers. They're asking how they remain resilient, how they improve operational efficiency and how they make sure their businesses remain competitive for the future. The biggest question is no longer whether to electrify, but how to do it in a practical and commercially viable way.
"The shift we are seeing is not speculative anymore. Policy, incentives and manufacturing timelines are now aligning in the same direction, and that changes the calculation for any fleet operator asking whether this is the right time to act."
She noted fleet operators in logistics, retail, manufacturing and last-mile delivery are increasingly assessing where EVs make financial sense within their operations, rather than viewing fleet electrification as an all-or-nothing exercise.
Total cost of ownership
WesBank says customers are primarily introducing new NEVs into their fleets, rather than focusing on converting existing internal combustion engine vehicles into EVs.
Nikelo noted that, from a leasing perspective, fleet replacement cycles naturally create opportunities for businesses to introduce EVs as older vehicles are replaced.
She added that businesses are increasingly looking beyond vehicle purchase prices and focusing on total cost of ownership, which includes fuel savings, maintenance costs and long-term operating expenses.
"We're definitely seeing interest from customers who are looking to start introducing NEVs into their existing operations with a goal of wanting to obviously be more resilient, or bring in some more operational efficiency and bring down some of the long-term costs.
“Because as we are seeing now with the rapid rate of technology, the prices of these new energy vehicles are coming down from what they were when first introduced into the market. I think we're also getting more insights into what the total cost of ownership is."
At the same time, more charging infrastructure and improved industry data are giving fleet operators greater confidence when evaluating business cases, she added.
Ecosystem approach
Rather than recommending wholesale fleet replacement, WesBank works with customers to determine which parts of their operations are best suited for electrification.
The company conducts fleet audits to analyse vehicle usage, operational requirements, route profiles and existing energy infrastructure before recommending pilot projects.
A sustainable fleet strategy, Nikelo said, starts by understanding the existing fleet, identifying maintenance efficiencies, improving driver behaviour and using operational data to determine which vehicles and routes are suitable candidates for electrification.
This staged approach allows businesses to test EVs within specific applications before committing to broader deployment.
The also brings together vehicle manufacturers, technology providers, charging infrastructure specialists and other industry partners to help customers navigate the transition.
According to Nikelo, fleet operators raise numerous practical questions around charging infrastructure, vehicle suitability, operational risk and financing, making collaboration across the mobility ecosystem essential.
"We've gathered original equipment manufacturers, technology players, infrastructure experts and innovators because this transition requires collaboration.
“Our role is to help customers navigate the journey, bring practical solutions together and make sure they have the information they need as the market evolves. Electrification will look different for every customer, and that's why we start with understanding each operation before recommending the right approach."
She added that while it will take years before EVs dominate South African fleets, adoption is expected to accelerate as technology matures, competition increases and more mobility solutions enter the market.
Share
